Free Trade and Trade Protection (id: 4948f8d8f)

本题目来源于试卷: Free Trade and Trade Protection，类别为 IB经济学

[单选题]
Identify which of the7b 1x*jgus(0fjqf u vfqu806y fh:-gg48ck++j dxtn hd ollowing are arguments for trade protection.

I. Protection of infant industries.
II. National security.
III. Anti-dumping.
IV. Limiting choice for consumers.

A. I and II only
B. I and III only
C. I, II and III only
D. I, II and IV only


参考答案:  C


本题详细解析:

C

$\underset{‾}{\text{Explanation}}$:
Statement I: an argument for trade protection is infant industries may be unable to compete against cheap imports from abroad, so tariffs keep infant industries competitive until they are fully established.

Statement II: national security concerns are a commonly-cited argument for trade protection, especially in the case of drugs, weapons, and essential goods.

Statement III: tariffs can be used to counter dumping by other countries, which happens when they sell their product at prices below cost as a way of getting rid of their surplus. This is unfair to domestic industries who may not be able to compete.

Statement IV: Less choice for consumers is an argument against trade protection, as it creates less variety in the imports of goods that are made available to domestic consumers.

微信扫一扫，分享更方便